New Delhi, July 26 (IANS) Despite global gold prices easing, Indian bullion prices remained flat this week while the rupee slightly declined compared to the US dollar due to outflows of foreign funds.
The price of 24-carat gold (10 gram) started the week at Rs 98,896 on Monday, rose to Rs 1,00,533 on Wednesday, and ended the week at Rs 98,880, according to data published by the India Bullion and Jewellers Association (IBJA).
“Gold traded weak by another $25 at $3345, down 0.70 per cent, as expectations of tariff deals between the US and trade partners like Japan and the EU reduced safe-haven appeal. These developments may keep gold volatile, especially at elevated levels,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
The focus now shifts to the upcoming Fed rate decision next week, which will be crucial for future price direction.
In the domestic market, rupee depreciation cushioned the fall, limiting the MCX gold decline to 0.50 per cent. With global cues softening, the short-term range for gold has shifted lower to Rs 97,000 to Rs 99,000, the analyst added.
Meanwhile, silver touched a new all-time high this week of over Rs 1.15 lakh per kg. Silver has increased by more than 34 per cent since January 1 this year, when it was priced at Rs 86,055 per kg. Also, in the futures market, gold and silver continued their upward trend
“The rupee traded weak, slipping below 86.50 with a 0.13 per cent decline against the dollar, as the USD traded higher near 97.68. Rising dollar strength and profit booking in capital markets weighed on the rupee. Market focus now shifts to next week’s US Federal Reserve interest rate decision, where mixed views are expected amid US government pressure for a rate cut,” said Trivedi.
In the near term, the rupee is likely to trade in the range of 86-87, he added.
According to the latest Reserve Bank of India (RBI) data, the central bank increased gold holdings amid global economic uncertainties. The gold reserves were up by $150 million to $84.499 billion during the previous week.
–IANS
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